• Bitcoin (BTC) may be heading for a significant price correction, warn traders, as the cryptocurrency struggles to stay above the $27,000 support level.
• Analysts issued a nuke warning for BTC prices, predicting a drop below the $27,000 support if bulls fail to hold on.
• Crypto analyst MAC_D noted that BTC’s recovery is facing several roadblocks such as US regulatory war on crypto assets and entities and declining stablecoin supply.
Warnings of Potential Bitcoin Price Drop
Bitcoin (BTC) might be headed for a major price correction, warn several analysts, as the world’s largest cryptocurrency struggles to hold above the $27,000 support. Analysts issued a “nuke” warning for BTC prices – a sudden depreciation in an asset’s price often more than 10%. Independent market analyst PostyXBT noted that the bulls’ last hope is at the $27,000 level while another trader suggested targeting near $23,000 should this support fail.
Consequences of Regulatory War
Crypto analyst MAC_D highlighted two factors hindering Bitcoin’s recovery; namely US SEC’s ongoing regulatory war on crypto assets and entities and declining stablecoin supply. The former has driven institutional business away from the US while the latter has decreased traders’ buying power due to less availability of stablecoins.
March Recovery Comparisons
PostyXBT noted that it is unlikely for Bitcoin to repeat its March recovery given its current price structure. In March 2021, Bitcoin deviated from its bearish structure to start a rally which some are hopeful will happen again soon. However this is not supported by BTC’s current structure according to PostyXBT.
Bulls’ Last Hope
Analysts are expecting Bitcoin price to “nuke” below the $27,000 support level unless bulls can successfully manage to hold onto it. This is seen by many as their last hope before significant drops in value occur.
Conclusion
Bitcoin (BTC) might be heading for a major price correction with analysts issuing a ‘nuke’ warning if bulls fail at protecting their last stand at $27k support level. This may come about due to macro issues like US SEC’s regulatory war on crypto assets and entities or declining stablecoin supply causing less buying power in the market hindering any potential rallies in value.
